Tesla (TSLA) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, TSLA broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock’s price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock’s price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
TSLA has rallied 6.3% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests TSLA could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account TSLA’s positive earnings estimate revisions. There have been 5 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on TSLA for more gains in the near future.
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).